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DECISION No

DECISION No. 178/1998/QD-TTg OF SEPTEMBER 19, 1998 ON THE BANK LOAN INTEREST RATES IN SUPPORT OF SEVERAL EXPORT GOODS ITEMS

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to Resolution No.02/1998/NQ-CP of January 26, 1998 of the Government;

In order to materialize the Government's policy on export promotion and to contribute to supporting the enterprises engaged in the production of and/or trading in export goods items, which meet with numerous difficulties;

At the proposal of the Governor of the State Bank,

DECIDES:

Article 1.- To allow commercial banks to support the enterprises producing and/or trading in a number of export goods items defined in Article 2 of this Decision by providing them with loans at the monthly interest rates which are 0.2% lower than those currently applied by commercial banks to export loans:

The interest rate support shall be rendered as from the effective date of this Decision and shall end when the Export Support Credit Fund is set up and starts its operation.

The export of goods items for payment of debts according to the Government's annual plans shall not be eligible for the interest rate support mechanism under this Decision.

Article 2.- Goods items eligible for the interest rate support mentioned in Article 1 of this Decision include:

1. Fresh and processed cattle and poultry meat;

2. Fresh and processed vegetables and fruits (excluding canned pineapple exported to the US market);

3. Computer software;

4. Several mechanical products, such as diesel engines, electric motors, bicycles and electric fans.

Article 3.- The commercial banks joining in the interest rate support as mentioned in Article 1 of this Decision include:

1. The Bank for Foreign Trade of Vietnam;

2. The Bank for Agriculture and Rural Development of Vietnam;

3. The Bank for Commerce and Industry of Vietnam;

4. The Bank for Investment and Development of Vietnam;

5. The Vietnam Export-Import Joint Stock Commercial Bank;

6. The Asia Joint Stock Commercial Bank.

Article 4.- When providing loans for the export of goods items defined in Article 2 of this Decision, the commercial banks shall have to evaluate the lending under the current credit regime and at the lending interest rates being currently applied by commercial banks to export goods.

After enterprises have exported goods and collected money therefrom, the commercial banks shall render the interest rate support on the basis of the debit balance of loans already provided for the export of the above-said goods items. In cases where the value of the export goods eligible for the interest rate support is smaller than the debit balance of the provided loans, the basis for determining the interest rate support level shall be the net value of the export goods.

Article 5.- The State Bank of Vietnam shall direct the commercial banks to take initiative in seeking customers; prepare capital to meet the capital demand of enterprises producing and/or exporting goods items eligible for the interest rate support; if the enterprises that export goods to the Russian market and CIS markets are unable to pay debts due to risks caused by objective reasons, the State Bank of Vietnam shall report to the Prime Minister for consideration and settlement.

Article 6.- The commercial banks providing export support loans as stipulated in Article 3 of this Decision shall be entitled to calculate the interest rate support level into their incomes for the purpose of determining the actual wages.

Article 7.- This Decision takes effect after its signing.

Article 8.- The Governor of the State Bank shall have to direct the commercial banks to correctly implement the provisions of this Decision.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decision.

Prime Minister

PHAN VAN KHAI